Fazio Digs In as Prosecutors Circle

ROME -- Bank of Italy governor Antonio Fazio may be mired in one of the worst scandals in the central bank's 112-year history, but for the moment his job seems as secure as ever.

Prosecutors in Rome have placed Mr. Fazio under investigation for his role in a disputed bank-takeover battle, people close to the investigation said yesterday, and he could be summoned for questioning in coming days. But earlier yesterday, the Bank of Italy's board -- the only body with the power to remove the governor -- reaffirmed its...